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Incomplete Enforcement of Pollution Regulation: Bargaining Power of Chinese Factories

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  • Hua Wang
  • Nlandu Mamingi
  • Benoit Laplante
  • Susmita Dasgupta

    ()

Abstract

Only a limited number of papers haveempirically examined the determinants of themonitoring and enforcement activities performedby the environmental regulator. Moreover, mostof these studies have taken place in thecontext of developed countries. In this paper,we empirically examine the determinants of theenforcement of pollution charges in China.More precisely, we seek to identify thecharacteristics which may give firms more orless bargaining power with local environmentalauthorities pertaining to the enforcement(collection) of pollution charges. Firms fromthe private sector appear to have lessbargaining power than state-owned enterprises.Firms facing an adverse financial situationalso appear to have more bargaining power.Finally, we also show that the higher thesocial impact of a firm's emissions (asmeasured by the presence of complaints), thesmaller the bargaining power of the firms withlocal environmental authorities. Copyright Kluwer Academic Publishers 2003

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 24 (2003)
Issue (Month): 3 (March)
Pages: 245-262

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Handle: RePEc:kap:enreec:v:24:y:2003:i:3:p:245-262

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: bargaining power; enforcement;

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References

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Citations

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Cited by:
  1. Dean, Judith M. & Lovely, Mary E. & Wang, Hua, 2005. "Are foreign investors attracted to weak environmental regulations? Evaluating the evidence from China," Policy Research Working Paper Series 3505, The World Bank.
  2. Kaiser, Kai & Schulze, Günther G., 2003. "International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants," HWWA Discussion Papers 222, Hamburg Institute of International Economics (HWWA).
  3. Lan, Jing & Munro, Alistair, 2013. "Environmental compliance and human capital: Evidence from Chinese industrial firms," Resource and Energy Economics, Elsevier, vol. 35(4), pages 534-557.
  4. Laura Hering & Sandra Poncet, 2011. "Environmental policy and trade performance: Evidence from China," Working Papers 2011-30, CEPII research center.
  5. Garth Heutel & David L. Kelly, 2013. "Incidence and Environmental Effects of Distortionary Subsidies," NBER Working Papers 18924, National Bureau of Economic Research, Inc.
  6. Eberl, Jakob & Jus, Darko, 2012. "The year of the cat: Taxing nuclear risk with the help of capital markets," Energy Policy, Elsevier, vol. 51(C), pages 364-373.
  7. Wang, Hua & Jin, Yanhong H., 2002. "Ownership And Industrial Pollution Control: Evidence From China," 2002 Annual meeting, July 28-31, Long Beach, CA 19671, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Dean, Judith M. & Lovely, Mary E. & Wang, Hua, 2004. "Foreign Direct Investment and Pollution Havens: Evaluating the Evidence from China," Working Papers 15854, United States International Trade Commission, Office of Economics.
  9. Hua Wang & Yanhong Jin, 2007. "Industrial Ownership and Environmental Performance: Evidence from China," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(3), pages 255-273, March.
  10. David Kelly, 2009. "Subsidies to Industry and the Environment," NBER Working Papers 14999, National Bureau of Economic Research, Inc.
  11. James Roumasset & Kimberly Burnett & Hua Wang, 2007. "Is China’s Growth Sustainable?," Working Papers 200723, University of Hawaii at Manoa, Department of Economics.
  12. Cole, Matthew A. & Elliott, Robert J.R. & Wu, Shanshan, 2008. "Industrial activity and the environment in China: An industry-level analysis," China Economic Review, Elsevier, vol. 19(3), pages 393-408, September.
  13. Ruiqing Miao, 2011. "TBargaining between firms and environmental protection bureaus: Water pollution in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 80-91, January.
  14. Lin, Liguo, 2013. "Enforcement of pollution levies in China," Journal of Public Economics, Elsevier, vol. 98(C), pages 32-43.
  15. Claustre Bajona & David Kelly, 2006. "Free trade agreements and the environment with pre-existing subsidies," 2006 Meeting Papers 306, Society for Economic Dynamics.

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